More than half of Kenya’s banks handled Sh1.6bn NYS cash

November 15, 2016 3:19 pm

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Public Accounts Committee Chairman Nicholas Gumbo says they have expanded their investigations to cover 17 more banks and financial institutions following fresh information from the Ministry of Devolution and Planning/LABAN WANAMBISI

By LABAN WANAMBISI, NAIROBI, Kenya, Nov 15 – It has now emerged that 28 banks were involved in effecting payments of National Youth Service funds dispatched to 11 companies.

Public Accounts Committee Chairman Nicholas Gumbo says they have expanded their investigations to cover 17 more banks and financial institutions following fresh information from the Ministry of Devolution and Planning.

Overview

Public Accounts Committee Chairman Nicholas Gumbo says they have expanded their investigations to cover 17 more banks and financial institutions following fresh information from the Ministry of Devolution and Planning.

Gumbo says the committee will continue with the investigations to determine if there was any form of impropriety in the banks or companies dealings with the NYS which lost Sh791 million in payments to suppliers.

“Evidence before the committee clearly shows most if not all of the payments originated from accounts held by the Ministry of Devolution and Planning at the Central Bank of Kenya. In this regard we will be seeking this information from the Ethics and Anti-Corruption Commission (EACC) and Directorate of Criminal Investigations (DCI); we would like to know whether any investigations have been or are being undertaken with a view of establishing culpability or complicity on the part of the Central Bank of Kenya (CBK) or any of its officers in aiding and abetting the scandal,” he said.

Gumbo says the committee will continue with the investigations to determine if there was any form of impropriety in the banks or companies dealings with the NYS which lost Sh791 million in payments to suppliers.

The House public finance watchdog team has further asked the Directorate of Criminal Investigation and Ethics Anti-Corruption Commission to investigate the matter.

This comes after the Financial Report Centre (FRC) at the beginning of this month reckoned that 15 of the country’s 41 banks raised 42 alerts over suspicious transactions relating to the NYS funds that were stolen through fictitious tenders.

LABAN WANAMBISI Laban Wanambisi is a Parliamentary and Political reporter. He joined the Capital Newsteam in 2005. Since then, he has reported on many of the major news events over the years including his first major assignment covering the 2005 National Referendum on the Draft Constitution, and several other subsequent key national and international events.